According to Larry Kudlow, the US economy is currently experiencing significant growth, with multiple indicators pointing to a boom in affordability and expansion across sectors [1]. Manufacturing is described as 'on a roll,' and the AI boom is noted as transforming the American economy, while construction activity is rising to levels not seen in many years [1]. Consumer spending and business investment are also highlighted as strong contributors to the economic upswing [1].
A key data point cited is the performance of non-defense capital goods excluding aircraft, commonly referred to as 'cap ex.' In the last three months, orders for these goods are up 10.5 percent, shipments are up 11.5 percent, and backlogs have increased by more than 9 percent, all measured at an annual rate. Kudlow emphasizes that such figures have not been observed in decades [1].
The stock market is also setting new records daily, including the S&P, with the Dow closing at 54,085. Nearly 150 million Americans are invested in the market, and 'Trump accounts' are reportedly coming in at a record pace, suggesting broad participation in investment vehicles such as Roth accounts [1].
Kudlow attributes the current economic strength to last year's 'One, Big, Beautiful Bill,' which included tax cuts and spending cuts, asserting that these measures are working today [1]. He urges the GOP to focus their messaging on growth and affordability, especially with the stock market performing strongly [1].
CONCLUSION
The US economy is demonstrating robust growth, with capital expenditures, manufacturing, and the stock market all reaching record levels. This positive momentum is attributed to previous tax and spending cuts, and is seen as a key opportunity for political messaging. Market sentiment is highly positive, reflecting widespread investor participation and confidence.